Milacron Sales and New Orders Up Year-Over-Year in Third Quarter

CINCINNATI, OHIO, November 4, 2005...Milacron Inc. (NYSE: MZ), a leading global supplier of plastics-processing technologies and industrial fluids, reported third-quarter sales of $191 million, up 6% over sales of $181 million in the same period last year. New orders of $191 million were up 4% from a year ago. The net loss in the third quarter of 2005 was $6.9 million, or $0.18 per share. This compared to a net loss of $5.5 million, or $0.18 per share, in the third quarter of 2004. The year-ago loss included $2.7 million in restructuring and refinancing costs. Operating results in the most recent quarter were held back by higher material costs - attributable in large part to rising oil and gas prices - as well as by increased pension, insurance and Sarbanes-Oxley compliance expenses.

Despite the negative impact of higher resin prices, Milacron's North American plastics machinery segment continued to recover, posting double-digit growth in sales and orders over the third quarter last year. Offsetting this to some degree was a 6% decline in orders in the company's European machinery segment.

Working capital reductions led to $15 million in net cash provided by operations in the third quarter. Primary working capital (see calculation table) was cut to 23.2% of sales, down from 24.1% in the second quarter. Cash at the end of the quarter grew to $48 million, and the company had approximately $35 million available for borrowing under its asset-based revolving credit facility, which remains essentially undrawn.

Company Focus

"Our global customers face many challenges on a macro-economic level, and we believe that our success is directly tied to our ability to provide these customers with what they value most from Milacron, namely: innovative technology and superior service at a fair price," said Ronald D. Brown, chairman, president and chief executive officer. "To this end, our plan to return Milacron to profitability focuses on three key areas: enhancing the servicing of our large installed customer base in North America and Europe, expanding our presence in the developing markets of Asia, Eastern Europe and Latin America, and continuously improving our cost structure and competitiveness through Lean initiatives and strategic sourcing."

Consolidation Measures

As previously announced, Milacron plans to further reduce its cost structure by consolidating certain operations in both North America and Europe. The objective is to focus the company's manufacturing on the production of products and components with high technological, proprietary or strategic value.

Implementing this consolidation will result in charges of approximately $20 million, of which about $13 million will be cash. Most of the charges should occur throughout 2006. Annualized cost savings generated by the consolidation are estimated at $15 million, with about $3 million realizable in 2006 and substantially the full benefit in 2007.

"In addition to the significant cost savings for Milacron, this consolidation will allow us to concentrate our energies on providing our customers with the innovative technologies and support services they need to compete effectively," Brown said.

Segment Results

Machinery Technologies-North America (machinery and related parts and services for injection molding, blow molding and extrusion supplied from North America, India and China)  New orders in the quarter increased 11% to $89 million, up from $80 million in the third quarter of 2004, reflecting ongoing strength in the U.S. economy across several end markets.  Sales climbed to $87 million, 13% over the same period last year.  Rising material and pension costs tempered segment earnings, which came in at $4.3 million versus $4.1 million in the year-ago quarter.

Machinery Technologies-Europe (machinery and related parts and services for injection molding and blow molding supplied from Europe)  Demand in Western Europe remained soft, as third quarter new orders declined to $34 million, from $36 million a year ago.  Sales of $37 million were essentially flat with the year-ago period.  The inability to pass through material cost increases negatively impacted earnings, as the segment lost $1.5 million compared to a $0.3 million loss in the third quarter of 2004.

Mold Technologies (mold bases and related parts and services, as well as maintenance, repair and operating supplies for injection molding worldwide)  Sales in the third quarter of $41 million improved slightly from $40 million a year ago.  The segment had an operating loss of $0.7 million compared to earnings of $1.1 million in the third quarter of 2004.  Pricing pressures in Western European markets, higher steel costs and increased product liability expense were the primary factors causing the drop in earnings.

Industrial Fluids (water-based and oil-based coolants, lubricants and cleaners for metalcutting and metalforming operations worldwide)  Sales of $27 million were essentially flat with the third quarter a year ago.  Higher-than-projected material costs, along with increased insurance costs for product liability, held back earnings to $1.8 million, a decline from $2.8 million a year ago.

Outlook

"For planning purposes we are assuming relatively modest overall growth - 4% to 5% - in our markets next year. With the incremental margin on higher sales, the initial cost-savings from our consolidation and lower regulatory compliance costs, we believe Milacron will achieve significant improvement in operating earnings in 2006. Longer term, by growing our customer support services, expanding in emerging markets and improving our cost structure, we will further strengthen Milacron's position as the supplier of choice in plastics technologies and industrial fluids," Brown said.

Conference Call

Today, Friday, November 4, at 1:00 p.m. ET, Milacron will hold an open investor conference call, which will be webcast live at www.milacron.com. The dial-in number for those interested in asking questions is (913) 981-4900  A replay of the call will be made available from 4:00 p.m. this afternoon through midnight November 11 on the company's website or by phone: (719) 457-0820, access code 5643158.

The forward-looking statements above by their nature involve risks and uncertainties that could significantly impact operations, markets, products and expected results. For further information please refer to the Cautionary Statement included in the company's most recent Form 10-Q on file with the Securities and Exchange Commission.

First incorporated in 1884, Milacron is a leading global supplier of plastics-processing technologies and industrial fluids, with major manufacturing facilities in North America, Europe and Asia. For further information, visit www.milacron.com or call the toll-free investor line: 800-909-MILA (800-909-6452).

Note: Today, Monday, August 1, at 1 p.m. EDT, Milacron will hold an open investor conference call, which can be accessed live at www.milacron.com.  The dial-in number for those interested in asking questions is 913-981-4900.   A replay of the call will be made available from 4:00 p.m. this afternoon through midnight Monday, August 8, on the company's website or by phone: 719-457-0820, access code 7477391.